Federal Direct Loans

If you have been awarded a Federal Direct Loan and your award package shows your eligibility, the following steps will help you complete the application process:

Understanding Federal Direct Loans

There are two types of Federal Direct loans. Subsidized loans neither require repayment nor accrue interest while you are enrolled at least half time. Unsubsidized loans can be deferred while in school, but interest accrues to the borrower and must either be paid or capitalized. The student does have the option to make interest-only payments while they attend college.

Effective July 1, 2013, the interest rate is fixed at 3.86% for subsidized and unsubsidized loans.  The standard maximum repayment term is 10 years with a $50 minimum monthly payment. Origination and Guarantee fees may be deducted from each disbursement unless your lender pays this on your behalf.

Year in college Dependent students Independent students
Total loan limit Subsidized loan limit Total loan limit Subsidized loan limit
1st year $5,500 $3,500 $9,500 $3,500
2nd year $6,500 $4,500 $10,500 $4,500
3rd year $7,500 $5,500 $12,500 $5,500
4th year $7,500 $5,500 $12,500 $5,500
5th year $7,500 $5,500 $12,500 $5,500


Obtaining Your Loan

The Federal Direct Loan Program has counseling requirements. If you are a first-time borrower of the Federal Direct Loan you will be required to complete Direct Loan entrance counseling a Master Promissory Note (MPN). You can do this online by visiting studentloans.gov. You will need your Federal Student Aid PIN# to sign in.